In real life, jet is actually derived from decaying wood under extreme pressure and is an extremely low grade of lignite. However, jet is useless as a fuel, although historically it has been a popular source of jewelry and crafts.

A sample of jet

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Jet, contrary to popular belief, is not addictive and is acceptably dangerousmostly safe perfectly safe to the dwarves. If modded into a fuel, it can not melt steel beams